Based on the Data in the Above Table, Then If

question 91

Multiple Choice

Based on the data in the above table, then if opportunity costs are constant, the opportunity cost of producing one cuckoo clock in the United States is ________, and the opportunity cost of producing one cuckoo clock in Switzerland is ________.

• A) 3 movies; 1.33 cuckoo clocks
• B) 0.33 movies; 0.67 cuckoo clocks
• C) 0.67 movie; 1.5 movies
• D) 1.5 movies; 0.67 movie

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Definitions:

Interest Rate

The percentage of principal charged by the lender for the use of its money or the return earned on deposited funds.

Effective Interest Rate

The actual return on an investment, taking into account the effect of compounding interest.

Cash Cycle

The process that manages the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.

Operating Cycle

The average time period between purchasing inventory and receiving cash from sales of the inventory.